Good credit control can avoid the need to take debt
collection action. However, where a debt arises and remains unpaid,
swift and effective measures need to be taken to maximise the chances of
At KBL we have an experienced debt recovery department. To
find out the costs involved to recover your debt please call 01204 527777. We deal with debt collection in a professional and proportionate manner:
- We do not send out automatically generated letters. Each case is
individual and the way forward is determined on the issues and parties
- We deal with debt matters from start to finish, unlike many bulk
debt collection agencies and solicitors, who are unable to proceed with
recovery once the matter becomes disputed or complicated.
- We have great expertise in enforcement of judgment debts, including
issuing insolvency proceedings, instructing a bailiff/sheriff,
implementing charging orders, attachment of earnings and third party
You can increase the possibility of recovery by obtaining personal guarantees where appropriate. Please contact our corporate team if you are interested in introducing personal guarantees.
KBL's Debt Recovery Service
What is Debt Recovery?
Debt Recovery is a litigation procedure
used to recover debts which are outstanding to our clients from their
customers. It is to be utilised where payment is outstanding with
respect to the services and/or product provided by our client to their
customers and delay is adversely affecting our client's business.
Why should you use it?
Not having an effective system of debt collection and credit control can
adversely affect the profitability of a business and in serious cases
of default, ultimately undermine that business resulting in its untimely
How can we help?
We aim to recover debts quickly or to advise you early on if it is not possible. Clearly,
where a debtor goes into insolvent liquidation and no security has been
provided to the client as a creditor, then it will not be possible to
get paid. However, our experienced team will not only be able to advise
which debts are worth pursuing but can also make use of all available
Court procedures to ensure prompt payment of any sums outstanding
together with a Court Order for fees incurred in instituting
Why should you act NOW?
In our experience, successful debt collection is about "first come,
first served". We find that a delay in instituting legal proceedings can
invariably result in failure to recover at all. This is principally
because there is a time factor associated with litigating a debt through
the Courts. Whilst this process is ongoing, struggling debtors
invariably seek advice from Insolvency Practitioners, Accountants or
other legal advisers and enter into one of the various methods of
insolvency arrangements currently available such as a:
- Creditors Voluntary Arrangement
- Administration (increasingly popular)
- Insolvent Liquidation.
The entering into of any of those types of arrangement generally has
the effect of prohibiting the creditor from pursuing the debtor any
further. In short, a creditor is effectively frozen out from proceeding
any further and merely ranks as an unsecured creditor should the debtor
company go into Insolvent Liquidation. It may be a further 12 months
therefore before the debtor receives payment and the amount he receives
is usually a small percentage of the amount he was originally owed.
Delay in issuing proceedings often means that the legal costs which
have been incurred from the issuing of proceedings until the creditor
company goes into some form of Insolvent Liquidation arrangement, are
also unrecoverable from the debtor. We would describe this as an
unfortunate "double whammy". The client here not only suffers the
indignity of not recovering a legitimate debt which has been outstanding
for a period of time, but also ends up having a liability to the
solicitor for pursuing the debt.
Careful consideration therefore needs to be given to pursuing debtors
and once it is resolved to pursue that debt it needs to be actioned
In our experience clients invariably have important "commercial
relationships" with the businesses they are thinking of pursuing and
they are reluctant to pursue that debtor through the Courts for fear
that the Court proceedings will undermine that relationship. We
understand the importance of commercial relationships; however the
importance of a commercial relationship always needs to be weighed
against the affect of not receiving payment in respect of a particular
If you are prepared to forego payment in its entirety in the
interests of preserving and maintaining commercial relationships
generally, then the debt should not be pursued.